Ovid Therapeutics recently released its latest 10-Q report. Ovid Therapeutics Inc. is a New York-based biopharmaceutical company founded in 2014 that develops small-molecule medicines for brain disorders, with a focus on epilepsies and seizure-related neurological conditions. Its current clinical-stage programs include OV329, a GABA-AT inhibitor in Phase 1 testing for drug-resistant epilepsies, and OV4071, a first-in-human oral KCC2 direct activator in Phase 1 testing for psychosis associated with Parkinson’s disease, Lewy body dementia and acute schizophrenia; the company also has licensing and collaboration agreements with AstraZeneca, H. Lundbeck, Northwestern University, Graviton and Marinus Pharmaceuticals.
In Item 2, management said the quarter was shaped by a larger cash balance, higher R&D spending and two financing transactions completed around the period. Ovid reported $165.6 million in cash, cash equivalents and marketable securities at March 31, 2026, working capital of $144.4 million and an accumulated deficit of $338.7 million; it also said that balance should fund current operating plans for at least 12 months from the filing date. For the three months ended March 31, 2026, the company posted a net loss of $17.0 million, compared with $10.2 million a year earlier, while revenue fell to zero from $0.1 million.
Research and development expense rose to $11.181 million from $6.659 million, an increase of about $4.5 million year over year. The company said the increase reflected ongoing and planned preclinical and clinical development, including work on OV329 and OV4071, as well as higher costs tied to consultants, contract research organizations, contract manufacturing organizations and licensing and collaboration agreements. General and administrative expense was not included in the excerpt provided, but management said it expects expenses to keep rising as it advances trials, seeks approvals, expands intellectual property and builds commercial infrastructure.
The financing activity was substantial. In October 2025, Ovid entered into a securities purchase agreement that included Series A warrants to buy up to 38,481,325 shares at $1.40 each; by April 17, 2026, all of those warrants had been exercised, generating gross proceeds of $53.9 million. On March 17, 2026, the company also completed a private placement that brought in net proceeds of $56.2 million from the sale of 19,154,321 common shares at $2.01 each and pre-funded warrants for up to 10,701,710 shares at $2.009 each.
Management said those proceeds, together with existing cash, are intended to support expansion of OV329 into additional indications, including tuberous sclerosis complex seizures and infantile spasms. It also said the company expects to continue incurring significant expenses and operating losses for at least the next several years and remains dependent on additional capital through equity, debt, collaborations, licensing or other transactions. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $2.79. For more information, read the company's full 10-Q submission here.
